TABLE OF CONTENT 1.

NATIONAL HOUSING BANK PROFILE OBJECTIVES BUSINESS/ACTIVITIESO RGANIZATION OFFICES PROCEDURE FOR AVAILING HOUSING LOAN 2. PUNJAB NATIONAL BANK HERITAGE LOGIC OF THE LOGO PROFIL EVISION & MISSION QUALITY POLICY ORGANIZATIONAL STRUCTURE CENTRALIZATION BANKING SOLUTION VARIOUS LOANS 3. ACHIEVEMENTS AND AWARDS 4. PNB SUBSIDIARIES PNB GILTS LTD BACKGROUD OBJECTIVES PRODUCTS & SERVICES 5. PNB HOUSING FINANCE LTD. INTRODUCTION PRODUCTS AND SERVICES a. APNA GHAR YOJANA b. GHAR SUDHARYOJANA c . L O A N A G A I N S T P R O P E R T Y

d.LOANFORCOMMERCIAL PROPERTY

e. FU TURE f . L I N E O F

REN TAL

SCRUTIZA TIO N F A C I L I T Y

C R E D I T

BALANCE SHEET 6. RESEARCH METHODOLOGY INTRODUCTION MEANING OF RESEARCH RESEARCH PROBLEM RESEARCHDESIGN 7. COMPARATIVE STUDY SAMPLE SELECTION SCOPE OF STUDY DELHI MARKET SEGMENT GRAPHS 8. CONCLUSION SWOT ANALYSIS LIMITATIONS 9. APPENDIX QUESTIONNAIRE BIBLIOGRAPHY

NATION HOUSING BANK

PROFILE The National Housing Bank (NHB) was established on 9th July 1988 under anAct of the Parliament viz. the National Housing Bank Act, 1987 to function as a principal agency to promote Housing Finance Institutions and to provide financialand other support to such institutions. The Act, inter alia, empowers NHB to: Issue directions to housing finance institutions to ensure their growth on soundlines Make loans and advances and render any other form of financial assistance toscheduled banksand housing finance institutions or to any authority established by or under anyCentral, State or Provincial Act and engaged in slum improvement and Formulate schemes for the purpose of mobilization of resources and extensionof credit for housing

OBJECTIVES NHB has been established to achieve, inter alia, the following objectives: a. To promote a sound, healthy, viable and cost effective housing finance systemto cater to all segments of the population and to integrate the housing financesystem with the overall financial system. b. To promote a network of dedicated housing finance institutions to adequatelyserve various regions and different income groups. c. To augment resources for the sector and channelise them for housing. d. To make housing credit more affordable. e. To regulate the activities of housing finance companies based on regulatory andsupervisory authority derived under the Act. f. To en coura g e a u gm entat io n o f su pp l y of b ui ldabl e lan d a nd a ls o bu il di ng materials for housing and to upgrade the housing stock in the country. g. To encourage public agencies to emerge as facilitators and suppliers of servicedland, for housing.

BUSINESS ACTIVITIES NHB, as the Apex level financial institution for the housing sector in the country, performs the following roles: (a) Promotion and Development:

NHB operates as a multifunctional Development Finance Institution (DFI) for theh o u s i n g s e c t o r . T h e B a n k ' s p o l i c i e s a r e d i r e c t e d t o w a r d s p r o m o t i o n a n d develo p men t of h ou s ing fin an ce i ns ti tu tion s. N H B ha s fra med g ui d el in es fo r HFCs with a view to promoting their development on sound and healthy lines.Th e g ui d el in es ar e reviewed a nd mod ified fr om t im e t o t im e in th e l igh t of developments in the financial and housing sectors. All HFCs registered with the National Housing Bank under sec. 29A of the National Housing Bank Act, 1987and inter alia having minimum net owned funds of Rs.10.0 crores are eligible for refinance support. It has also contributed to the equity capital of five HFCs. NHBhas a dedicated Training Division which organises regular training programmes inareas relating to housing and housing finance for development of managementcapabilities of officials working in the sector. NHB's promotional endeavours arealso directed towards capacity building for the housing finance system besidesenlarging the credit absorption capacity.

(b)

Regulation and Supervision:

NHB exercises regulatory and supervisory authority over the HFCs in the matter of acceptance of deposits by them pursuant to the powers vested in it under theAct. As per the amendments to certain prov1.sions of the Act, which came intoeffect fr om J une 12, 2 00 0, N HB is ves ted wit h p owers to gra n t Cert ifi ca te o f Registration to companies for commencing/carrying on the business of a housingfinance institution. Besides, NHB regulates the deposit acceptance activities ina ccorda nce wi th th e Ho us in g Fi na n ce Compa ni es (J HB) D ir ect io ns,

2 00 1,amended from time to time, in the matter of ceiling on borrowings (including public deposits, rate of interest, period, liquid assets, etc). NHB has also issuedDirections on prudential norms in regard to capital adequacy, asset classification,concentration of credit, income recognition, provisioning for bad and doubtfuldebts etc. NHB supervises the working of HFCs through on-site inspection andoff-site surveillance. (c) Financing:

NHB raises resources for the housing sector towards increasing new housingstock and provides refinance to a large set of retail lending institutions. Thesei n c l u d e s c h e d u l e d commercial banks, scheduled state cooperative b a n k s , scheduled urban cooperative banks, specialised housing finance institutions, apexco-operative housing finance societies and agriculture and rural development b a n k s . R e f i n a n c e i s provided b y NH B under various schemes, which a r e formulated taking into account, several aspects of the National Housing Policy,the constraints facing the sector etc. NHB has also a window for direct lending toPublic Agencies such as, State Level Housing Boards and Area DevelopmentAuthorities for large scale integrated housing projects and slum redevelopment p r o j e c t s . N H B i s a l s o o p e r a t i n g a s p e c i a l w i n d o w f o r e x t e n d i n g f i n a n c i a l assistance to the people affected by natural calamities viz. earthquake, cycloneetc. (d) Resources of NHB

NHB raises resources from diversified sources, both domestic and external byI s s u i n g B o n d s / d e b e n t u r e s , borrowing from RBI and f i n a n c i a l institutions/organizations etc. Under the Act, NHB is authorized to issue and sellBonds with or without the guarantee

of the Central Government for the Purposeof carrying on its functions. (e) Rural Housing:

NHB launched the "Swarna Jayanti Rural Housing Finance Scheme" to mark thegolden jubilee of India's Independence. The Scheme seeks to provide improvedaccess to housing loans to borrowers for construction/acquisition/ Up-gradation of a house in rural areas of the country. (f) Recent Initiatives

Securitization of mortgage loans of the retai11ending institutions facilitates for canalizing household savings into the housing sector is seen as a potentially viablemarket oriented alternative. Support to Mortgage backed securitization is a major policy initiative of the Government as manifested in its National Housing andHabitat Policy announced in 1998. This policy emphasizes NHB's lead role inmortgage-backed securitization and development of a secondary mortgage marketin the country. As the apex body in housing finance sector in India, NHB has been playing a lead role in the sector in matters relating to policy environment as alsooperational mechanism for the development of a secondary mortgage market inIndia. In order to resolve the twin problems of affordability and accessibility affectingthe growth of the housing finance business and the prospect of home ownership, NHB has been entrusted with the responsibility of launching a Mortgage CreditGuarantee Scheme for protecting the lenders against default.

ORGANISATION NHB is an Officer Oriented Organization and has the following departments. 1. Regulation and Supervision

2. Board and CMD Secretariat 3. Legal 4. Information Technology 5. Enabling Processes 6. Resource Mobilization and Management 7. Refinancing Operations 8. Project Finance 9. Development and Risk Management

HERITAGE Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) hasthe di s tinct io n o f bei ng t he fi rst Ind ia n bank to have b een s tar ted s o lel y wit h Indian capital. The bank was nationalized in July 1969 along with 13 other banks.From its modest beginning, the bank has grown in size and stature to become afront-line banking institution in India at present. A professionally managed bank with a successful track record of over 110 years. Largest branch network in India - 4062 branches and 447 ExtensionCounters spread throughout the country. Strategic business area covers the large Indo-Gangetic belt and themetropolitan centers. Ranked as 323rd biggest bank in the world by Bankers Almanac (January2006), London. Strong correspondent banking relationships with more than 217international banks of the world. More than 50 renovv11ed international banks maintain their RupeeAccounts with PNB. y Rupee drawing arrangements with M/s UAE Exchange Centre, UAE, M/sAl Fardan Exchange Co. Doha, Qatar,M/s Bahrain Exchange Co, Kuwait,Mis Bahrain Finance Co, Bahrain,M/s Thomas Cook Al RostamaniExchange Co. Dubai, UAE, and M/ s Musandam Exchange, Ruwi,Sultanate of Oman.